Barrick , Shandong Complete Sale, Form Joint Venture
Editor's Note: Kitco readers, have your say! Check out our newest feature – KITCO CHAT! – where you can share your comments and ask questions directly to us.
Barrick Gold Corp. (NYSE, TSX: ABX) has completed the previously announced sale of a 50% interest in the Veladero mine in Argentina to Shandong Gold Mining Co., Ltd. for $960 million. The April agreement also calls for the two companies to form a 50-50 joint venture at Veladero. As a result, “the two companies have also formed a working group to explore the joint development of the Pascua-Lama deposit,” Barrick says. “As a third step, Barrick and Shandong will evaluate additional investment opportunities on the highly prospective El Indio Gold Belt on the border of Argentina and Chile.” Proceeds from the sale of 50% of Veladero will be used primarily to reduce debt, Barrick says.